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3 Buy-Rated Stocks Breaking Quarterly Records: VLO, RTX, IBKR

Key Takeaways

  • The Q3 earnings season has picked up rapid pace, with a decent amount of companies already reporting.
  • VLO, RTX, and IBKR all posted quarterly records, reflecting favorable business momentum.
  • All three sport favorable Zacks Ranks, providing a solid backdrop for near-term share performance.

The Q3 earnings season continues its rapid pace, with several companies, including Valero Energy (VLO - Free Report) , RTX (RTX - Free Report) , and Interactive Brokers (IBKR - Free Report) delivering record-breaking results while also sporting favorable Zacks Ranks.

Valero Energy Posts Record Profit

Valero Energy, one of the largest independent petroleum refiners, delivered a highly positive release, benefiting significantly from the favorable refining environment.

Adjusted earnings totaled $23.90 per share, comfortably exceeding the Zacks Consensus EPS estimate of $21.23 and climbing more than 550% YoY. Revenues of roughly $46.1 billion also exceeded the Zacks Consensus estimate of $38.8 billion, reflecting a beat of nearly 19%.

VLO posted record quarterly profit, with net income reaching $6.8 billion compared to $1.1 billion in the year-ago period. Refining operating income soared to $8.8 billion from $1.6 billion, reflecting a sizable improvement in margins. Valero also saw record quarterly ethanol production of 4.8 million gallons per day, with its refineries operating at near-record utilization rates.

The stock sports a favorable Zacks Rank #1 (Strong Buy), with its earnings outlook benefiting heavily from positive revisions over recent months.

Zacks Investment Research
Image Source: Zacks Investment Research

RTX Reports Record Backlog

RTX, a leading aerospace and defense company and current Zacks Rank #2 (Buy), delivered strong quarterly results,with adjusted earnings of $2.26 per share exceeding the Zacks Consensus EPS estimate of $1.78 by nearly 27% and climbing 33% YoY. Revenues of $24.5 billion similarly exceeded the $24.0 billion consensus estimate by 4%, reflecting 11% YoY growth.

RTX exited the period with a record $340 billion backlog, including $176 billion from commercial aerospace and $164 billion from defense. The impressive backlog provides strong revenue visibility, undoubtedly a major positive for investors. EPS revisions for its current and next fiscal year remain on a positive trajectory, suggesting growth rates of 17% for FY26 and 6.7% in FY27.

Zacks Investment Research
Image Source: Zacks Investment Research

Interactive Brokers Sees Record Customer Growth

Interactive Brokers, an automated global electronic brokerage firm, delivered another solid quarter, benefiting from continued account growth and higher trading activity.

Adjusted earnings of $0.67 per share matched the Zacks Consensus estimate, climbing 17.5% YoY. Revenues of $1.9 billion exceeded the $1.8 billion consensus estimate by 1.9%, reflecting 16.3% YoY growth.

Importantly, customer accounts reached a record 5.58 million, climbing 35% YoY. Customer equity similarly grew 27% to nearly $965 billion, while net interest income increased 19% to roughly $1.2 billion.

The company also raised its quarterly dividend by more than 70%, reflecting a strong commitment to increasingly rewarding shareholders. IBKR sports a favorable Zacks Rank #2 (Buy), with annual EPS estimates continuing to remain on a bullish trajectory.  

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

The Q3 earnings season continues to deliver impressive results, with Valero Energy (VLO - Free Report) , RTX (RTX - Free Report) , and Interactive Brokers (IBKR - Free Report) all posting quarterly records.

In addition to reporting quarterly records, all three sport favorable Zacks Ranks, reflecting positive earnings outlooks and providing a constructive near-term backdrop for shares.

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